“Who knows what will happen,” said Buffett, “but [Berkshire Hathaway] has a better chance of being here 100 years from now than any company I can think of.”
Warren once said to me that he graded his performance as manager by how few shares traded. He then added, with a smile, that that view was not shared by his CEO colleagues or in Wall Street. I stored his comment away wondering what he meant. Years later, Morningstar identified the top mutual funds over 10 years. The winner was Ken Heebner’s CGM fund. He beat the index by a comfortable margin. MS then, somehow, calculated the performance of individual CGM shareholders. On average, they underperformed not only CGM, but the index by wide margins. The lesson here became clear: Heebner focused his attention on beating the market, which he did, but he paid little attention to inculcating his shareholders to be patient shareholders—they tended to buy high and sell low. And he didn’t attract 40,000 shareholders to his annual meetings.
I definitely think Warren and Charlie did as good a job as could ever be possible at cultivating the right kind of shareholder base. One with a long-term mindset, patience, and not just after a quick buck if it's not in the company's best interests.
Great read! I’ve never met Mr. Buffett, but his wisdom has mentored me for decades. My journey to (and now through) financial independence has been shaped by his insistence on patience, rationality, and sound judgment. He’s leaving Berkshire not just in good hands, but with the right DNA.
Jeff Bezos once observed that most large companies last 30-plus years, not 100-plus. Berkshire looks built to be the exception.
I'm sort of pessimistic by nature, but I worry more so in terms of future generations of leaders after Greg Abel. I think Abel will do a great job and, as Charlie said, keep the culture alive.
Warren once said to me that he graded his performance as manager by how few shares traded. He then added, with a smile, that that view was not shared by his CEO colleagues or in Wall Street. I stored his comment away wondering what he meant. Years later, Morningstar identified the top mutual funds over 10 years. The winner was Ken Heebner’s CGM fund. He beat the index by a comfortable margin. MS then, somehow, calculated the performance of individual CGM shareholders. On average, they underperformed not only CGM, but the index by wide margins. The lesson here became clear: Heebner focused his attention on beating the market, which he did, but he paid little attention to inculcating his shareholders to be patient shareholders—they tended to buy high and sell low. And he didn’t attract 40,000 shareholders to his annual meetings.
I definitely think Warren and Charlie did as good a job as could ever be possible at cultivating the right kind of shareholder base. One with a long-term mindset, patience, and not just after a quick buck if it's not in the company's best interests.
Great read! I’ve never met Mr. Buffett, but his wisdom has mentored me for decades. My journey to (and now through) financial independence has been shaped by his insistence on patience, rationality, and sound judgment. He’s leaving Berkshire not just in good hands, but with the right DNA.
Jeff Bezos once observed that most large companies last 30-plus years, not 100-plus. Berkshire looks built to be the exception.
Thanks Cosmo! I completely agree. Berkshire was built to last.
UNLESS!
The government in its "wisdom" decides that it is too big to exist, and orders it demise.
THAT is my fear. First a tax on already taxed dividends. Next, a tax on unpaid dividends!
I really hope that Berkshire will survive the post-Buffett era.
I'm sort of pessimistic by nature, but I worry more so in terms of future generations of leaders after Greg Abel. I think Abel will do a great job and, as Charlie said, keep the culture alive.
⛵️